April to June 2019-20

Electrical Equipment industry has further strengthened growth momentum by registering 13.7% overall growth in first 10 months of FY17-18 after business re-alignments for GST.

Major positives are turnaround in growth for Rotating Machines sector especially HT Motors indicating momentum in power generation & core sector capex.

Heavyweight sectors like Transformers, Cable and Transmission Line Towers have registered a double digit growth in production. Both LV and HV Cables production showing +ve growth both from domestic & exports .

Growth in Power Transformers is attributed to demand for HV & EHV Transformers with support from growth in exports also; whereas in Distribution Transformers, growth is led by domestic demand especially rural electrification program.

Growth in TLT production is mainly due to increased supply to export and deemed export orders. For Meters, there has been turnaround after sluggish period till first Half year. There has been good off-take of Single & Poly phase meters by domestic & export demand. Smart Meters sales has also picked up.

LV Switchgear however has been sluggish in last 5-6 months with deceleration in growth to 5.4%; mainly from Contactors and ACBs. Decline in MCCBs up to 100 Amp may be attributed to replacement with other protective devices. Low growth in MCBs and RCDs may be due to slow off-take by realty & infrastructure sector.

However, major equipment in transmission, distribution and substations like Conductors, MV Circuit breakers, Insulators have witnessed a decline in production in the range of 10-20%. At the same time, there has been increase in Imports for AC Motors, HV Cables, Conductors, Power & Dist. Transformers from Germany, China, Japan, UK etc. which is taking away some pie of the domestic market.

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